Infrastructure: Future Investments at Risk

Due to the economic crisis caused by the pandemic, the income of the Costa Rican Social Security Fund was reduced, which puts at risk the financing of 120 infrastructure projects that together total an investment of approximately $1.521 billion.

Monday, November 16, 2020

Prior to the pandemic, Caja Costarricense del Seguro Social (CCSS) plans were to tender and execute over the years 2021-2030, more than a hundred infrastructure projects.

See "Hospital Infrastructure: $340 Million Investment"

According to the authorities of the Costa Rican Social Security Fund (CCSS), in the next ten years, the construction of national and regional hospitals, Ebais, health areas and works to reinforce existing structures could be stopped.

Given the drop in Costa Rican economic activity, which caused a decrease in the CCSS's income, on October 15, 2020 the Board of Directors of the institution unanimously agreed that the infrastructure projects that were projected for the following years could not be tendered, until the Social Security had the financial strength to execute them.

You may be interested in "Hospitals: Commercial Strength of Locations" review that "... The projects that are stopped will remain in the design, planning and land acquisition stage, but will not be able to enter into the construction process, said Jorge Granados Soto, interim manager of infrastructure and technology of the CCSS."

According to an explanation given by Granados to the CCSS Board of Directors, "... in order to start the bidding process they will have to have an authorization from the Financial Management, it is not that we are going to stop them and they will not be done, but we are going to continue working them until they reach the bidding point, at that time the financial issue would be evaluated."

CCSS directors anticipate that in 2020 and 2021 the institution will report a considerable drop in its income.

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